New Delhi: The Reserve Bank of India, the country’s largest financial institution, has made a significant decision to cut the repo rate, which is now benefiting borrowers. The RBI cut the rate by 25 basis points. This decision has been a booster dose for many customers.

Following the RBI’s announcement, five major banks have also revised their lending rates. This means that you can now avail of affordable loans and get your work done. Banks offering affordable loans include Bank of Baroda and Bank of Maharashtra. You can learn in detail below which banks are charging how much interest on which loans. This will put an end to your confusion.

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How much did the RBI cut the repo rate?

The Reserve Bank of India has reduced the repo rate by 0.25%. This brings the total repo rate to 5.25%, down from 5.50% previously. This will now allow you to avail of cheaper loans from banks. This is the fourth consecutive RBI cut in the repo rate. These banks offer a gift after the repo rate cut.t

Get a cheaper loan from the Bank of India.

Just after the RBI cut the repo rate, Bank of India delivered good news. The bank has now reduced its interest rate on loans from 8.35% to 8.10%. The new loan rates became effective on December 5th. Furthermore, Indian Bank has passed on the benefits of the repo rate cut to its customers.

The repo rate-linked benchmark lending rate has been reduced from 8.20% to 7.95%. Indian Bank has also reduced its MCLR (Marginal Cost of Funds Based Lending Rate) by 5 basis points for its customers. The new rates for this bank became effective on December 6th.

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Bank of Baroda also delivered good news.

You will be pleased to know that Bank of Baroda has also delivered good news, following the RBI’s decision to cut the repo rate. The bank announced an immediate reduction in loan interest rates. The BoB reduced repo-based lending rates by 25 basis points, bringing them down from 8.15% to 7.90%. These new interest rates were effective December 6th.